If investing is a religion, Warren Buffett is prophet, high priest, saint and lesser diety, all rolled into one. The way he goes, so goes the world's best and brightest (and for good reason. He's smart). The big news on everyone's lips, today, is that Buffett is once again in the market for some juicy acquisition; perhaps in the energy sector. Here are some leading suggestions:
- PG&E, San Francisco's utility. Worth $13 billion, this company is seen as a solid local utility that successfully weathered the energy crisis of the last several years. The stock is up $1.29 today to $40.75 on the rumors.
- Mercury General Corp., Los Angeles-based automotive insurer. Worth $3 billion, the company has a 16% ROE and a low debt balance. Warren Buffett loves his insurance companies, and the company's stock is up $2.35 to $57.90 in intraday trading on the speculation.
- Les Schwab Tires, a Prineville, Oregon-based tire store chain. Founder Les Schwab has retreated following the recent death of his daughter, and the company fits into Buffett's love for innovative and well-run companies.
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Reader Comments (Page 1 of 1)
5-05-2006 @ 3:41PM
Merchant Prince said...
I was also impressed with Buffet's undeniably good track record over the years so I bought the stock two years ago. I have yet to make a single penny gain. At this point I am a little skeptical of the hype.
5-06-2006 @ 10:30AM
EJ Passeos said...
Hi.
Over the last few days, I even saw Harley-Davidson bantered about for Mr. Buffet.
I guess he didn't bite. Despite the impression that H-Ds will sell forever, they won't and aren't selling well now in some areas, particularly certain models.
H-D sells their bikes to dealers and if they sit on them and they rot, no skin off H-D's hide. But, it's not that simple. They have for several years offically/non-offically had a plan in place where dealers can sell their inventory to other dealers and retain the "credit for them (thus meaning not losing allocation).
Motorcycles are in fact similar to cars with design, reputation, and other factors weighing on sales. H-D makes nothing that compares to BMW, Aprilla, Ducatti, etc. in technology. Their lagging behind the Asian bikes in performance isn't debatable. They have ridden wave after wave of feckless media attention to another "anniversary" and there is the continuing, questionable committment to Buell. The much heralded, advertised V-Rod is lanquishing on showrooms around the country, despite Porsche design elements and Discovery channel "specials."
Warren wisely said too risky for us.